Hi, I already searched at Google, but I can't find any single resource teaching how to use this tool properly. In the tradimo website, it says that when the oscillator approaches the upper extremes of the indicator, it shows that the asset could be overbought. When I insert this indicator into my MT4, I didn't see the upper extremes line. How can I plot this line?
How to use moving average of oscillator?
- Thread starter Azlan00IM
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dkami
Sergeant
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@ Azlan00IM I have never used this indicator but with a quick look it has exactly the same periods as the MACD as default settings and most of these type of indicators including the awesome oscillator you can get oversold, overbrought along with divergences.
There is a few ways to see oversold, overbrought with these types of indicators but the big problem with the indicator you wish to use is the overbrought, oversold level will change depending on the timeframe, MACD has the same issue along with most of the other indicators of this type that's why a lot of traders will use the awesome oscillator or true strength index as with these indicators the oversold,overbrought will be the same level on all timeframes
Another way to get oversold,overbrought is the way Sive suggests in his trading course and that's simply to look @ the highs and lows along a chart and simply draw a line (see attachment) but I prefer to draw a line @ an extreme level that's always the same level on all timeframes and I use the TSI for this
There is a few ways to see oversold, overbrought with these types of indicators but the big problem with the indicator you wish to use is the overbrought, oversold level will change depending on the timeframe, MACD has the same issue along with most of the other indicators of this type that's why a lot of traders will use the awesome oscillator or true strength index as with these indicators the oversold,overbrought will be the same level on all timeframes
Another way to get oversold,overbrought is the way Sive suggests in his trading course and that's simply to look @ the highs and lows along a chart and simply draw a line (see attachment) but I prefer to draw a line @ an extreme level that's always the same level on all timeframes and I use the TSI for this
dkami
Sergeant
- Messages
- 757
Also if you havn't already, Sive goes threw some of the main indicators, how to use them along with oversold, overbrought conditions here on FPA and is well worth your time to read! https://www.forexpeacearmy.com/fore...y-school-complete-forex-education-pro-banker/
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